North Sea operators are expected to shut in assets early adding costs to those remaining, an analyst has warned.
Fiona Legate, a research analyst at Wood Mackenzie, has said that it is likely more firms will follow in the footsteps of Fairfield Energy, which recently announced it would start decommissioning its Dunlin field five years early due to the impact of low oil prices.
As more platforms and fields cease to operate, terminal and pipeline costs for neighbouring fields in the same chain are expected to rise. This is of particular concern in mature areas such as the Northern North Sea, where interdependence is high.
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